forex trading

Discussion in 'Technical Analysis' started by thebull, May 21, 2006.

  1. thebull


    Hello everybody,

    I am new here at this forum.
    I have about 5 years of technical trading experience in the stockmarket.

    I am now interested in forex.

    I have noticed that my patterns that I use in the stock market dont always work in forex can anyone give me an idea of how to technical trade in the forex markets.

    Thanks in advance.
  2. No pattern will work all of the time. You still have to exercise good money management and not let small losses grow into huge losses. Your pattern may also be "optimized" to the market you're trading and require some re-tooling to whatever currency you're interested in trading, especially if there's a large difference in volatility between the two.
  3. thebull...

    Welcome to Forex and to are going to be a millionaire if you are already not one. You will find that ET's Forex Forums have some of the most accurate info, while limiting the scrap...

    Start with identifing correlations between the pairs, this will jumpstart you into the World of Forex...Next note the volatilities and at which time they increase. Pay particular attention to the first one hour overlaps of the world markets.

    Good Trading to You. :)

    Michael B.

  4. mahras2


    Remember that FX is a symmetrical, two sided, paired market. Unlike stocks, FX has two essentially complimentary values (EURUSD/USDEUR). Thus, while stocks tend to go down in a much more volatile manner, this quality does not exist in FX (you have equal volatility on both move ups and downs).
  5. thebull


    interesting and true comment. what technical indicators do you think are good for forex trading
  6. Re forex trading question,

    Get a 4 monitor pc - your going to need it. Invest, invest - before you invest. Mold a plan to suit your needs - take what you can from free providers of information (seek and ye shall find) and then tailor make it to suit your style. Read as many posts on ET as you can over the next few months (trading naked site is also recommended) until things start to click and then go from their. (everything you need to know lays buried here somewhere - go on an information treasure hunt). What works for me will not work for you - it's a very personal journey, thats why people are not telling you what they use - EVERYTHING WORKS. I have gone from day-trader to scalper to swing trader and now I am day trading full time again but shooting for moves between the two extremes.

    Stay away from Swissy, Cable and exotics - too wippy for a begginer, you need a boring plodding type currency that you can gain consistant results with and then watch the compounded returns grow.

    Get a good data feed - my trading transformed when I got esignal (forex costs US$150/month). You will not regret it. I am assuming you will be trading 3-5 minute charts as your midrange chart. Stay away from tick and volume charts - in my experience they give too many signals and market makers know how to manipulate them to keep you out of good moves (ie in a low volatility time period). Time charts give fewer moves but more reliable if they line up right on all time frames. Different story if your a scalper - what do you think ES?

    Learn about fibonacci retracements and extensions - it will be valuable to know that stuff when looking at support and resistance. For example just a few minutes ago an impulse move retraced to 61% level and I was half way to target. At that EXACT point price stalled and turned around - I reversed leaving pips on the table but then hit the next target. Like ElectricSavant and Mrs Savant - get up early - before 2 am ET if you can and trade through till new york lunch. Alot of good moves in that night period (lucky me I live in Australia). The heart and soul of forex lives somewhere in London, so set your PC to GMT.

    Trust your indicators/price action - market makers know exactly how to move price to make it difficult for you to put on a trade even if in hindsight it looked obvious. Take time out and study the currency you want to trade, it is not the same as trading stocks. Screen time is the best lesson you can have.Be aware that on big news days the action gets a bit thin pre data release and then can Explode afterwards - their is nothing like it anywhere. Everyday is a party in Forex - you can catch as many moves as you can handle - 10 - 12 moves a day depending on your time frame. In a short amount of time if you play your cards right those pips are worth $1000 each on Oanda (highly recommend this broker) - so go slow, start small and master the basics - and you should do fine.
  7. thebull,

    your getting a lot of good stuff here...(I agree with NZDSPeCELISt on everthing, but the swissy is the most stable currency in the world :))

    stay away from scalping yourself to the poor house...

    Wifey and I trade 24 hours in 4 hour shifts Monday-Thursday...if you do choose the scalping route, which many do...try to trade off the 5 minute will notice some moves at the switch from one candlestick to the the just before and the right after...memorize those moves and what happens next...never scalp more than four hours at a time, if you have the energy.

    hey I gotta shut up now...or i will have to kill ya...

    Michael B.
  8. delta1


    Paper trade for as long as you have to, otherwise you are doomed for failure.
  9. Hey ES (and wifey),
    Good to see you've stopped scalping!!


    i'll say it again


    Swissy is the best (To quote Chuck Le Beau - "it remains the worlds best trend following currency after the demise of the DMark"). Boy can that baby move - all that cosa nostra money being played wit by SPeCIALISt's.

    But these newbies should be kept away from it:D

    Man - the god damn yen this year has been moving great - heaps of 30 and 50 pip moves in it throughout the day - pound for pound these last few months it is king (or should I say emperor:)

    last year it was s*** - What's going on there? I read that 30% of daily volumes in Japan are now from day traders - lots of new money pouring into that market it seems. Looks like all the house wives in Japan that aren't F****** Gaijin english teachers are day trading the Yen!!!!!!

    the SPeCIALISt
  10. we are scalping/arbing more than ever...who said we stopped? NZD...if you are sKalPzy/coinzy reborn...i want to talk to you...:)

    Good Trading to You and Remember stay kewl in those cheap sunglasses :)

    Michael B.

    #10     May 25, 2006